Tendering strategies. Serial tendering is more of a hybrid/advanced method tendering which combines a normal competitive tender (whether single or two-stage) with negotiation. Where this is the case the original competitive tender will serve as a framework. Dec 11, 2017 - Serial Tendering Advantages And Disadvantages Average ratng: 5,9/10 5691votes. Tendering methods, Procedures in Construction. A wrong choice may lead to an unhappy client / contractor relationship. Android sample project free download. It also may end up with dissatisfied client and sometimes even with an insolvent contractor. The client’s professional advisers should find a contracting company; That is financially stable / and has a good business record. For which the size of project is neither too small nor too large. That has a reputation for good quality workmanship and efficient organization. There are three principal methods for choosing a contractor: (a) open tendering, (b) selective tendering, (c) nomination. Open Tendering – Initiated by client’s architect/ quantity surveyor advertising in newspapers and/or inviting contractors to apply for tender documents and to tender in competition for carrying out the work. Usually a deposit is required to discourage irresponsible applicants, the deposit being returnable on the submission of the tender. Advantages – There can be no favoritism. Can get the maximum benefit from competition. An opportunity is provided for any capable firm. Disadvantages – There is a danger that a firm inexperienced in preparing tenders may submit the lowest tender. There is no guarantee that the lowest tenderer is sufficiently capable or financially stable. Total cost of tendering is increased. Selective Tendering – A short list drawn up of contractors who are considered to be suitable to carry out the proposed work. Names may be selected from an approved list or ‘panel’ maintained by the client. It is recommended that the number of tenderers should be limited to between five and eight, depending on the size of the contract. If the firms on the list are all reputable, well established and suitable for the proposed work, then the selection is resolved into a question of price only. Advantages – Ensures that only capable and approved firms submit tenders. Reduce the cost of tendering. Disadvantages – Cost level of the tenders will be higher due to less competition and also due to the higher caliber of the tenderers. Nomination – Sometimes referred as ‘ single tendering’. It is a special case of selective tendering where the short list has only one name. Used when the client has a preference for a particular firm, often because it has done satisfactory works for him before. Competition is eliminated and that will lead to a higher price. Contract sum will be arrived by a process of negotiations. When a large project is to be carried out in successive phases, a combination of selective tendering and nomination is employed – this is sometimes called “serial tendering”. *The contractor is chosen for the first phase by means of selective competitive tendering. *The accepted tender forms the basis of payment for the resulting contract. *The tender is also used for the second and later phases, provision being made for so doing in the initial contract by the inclusion of a formula for updating prices. The purpose of serial tendering is to gain the benefits of continuity. *The contractor for the first phase of the project will have his site organization set up, his offices and storage huts, etc., already in use and plant of various kinds on the site. *When the second phase commences, these facilities will be already available. It allows smooth transition with less additional expenses. *In addition, the contractor’s workforce will be familiar with the details of the construction after building the first phase, and it helps to work more speedily and efficiently. Negotiated Contracts: • This may be done using bills of quantities / schedules of rates. • The rates and prices are discussed and agreed until eventually a total price is arrived.
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